Issue link: https://read.dmtmag.com/i/306360
36 | Boating Industry | May 2014 [ Time to grow? ] www.BoatingIndustry.com sions, Strong said the discussion begins with the board, including his sons Jay and Ryan and wife, Re. Outside of the family, the company works with a family business consultant that has pro- vided valuable advice over the years. Strong's Marine also has a good relationship with its local bank, as well as a long-term accountant that has assisted with the company's fi nances. "The biggest thing is to reach out to other people, whoever you think those other people [are] in your world that would be able to hold the conversations in confi dence, but yet that you respect in the community, and then try to be a good listener to what they say," he said. "Some- times you can get hell-bent on doing something … but you might not really spend as much time as you should listening to what they have to share with you." Nuts and bolts In looking ahead, it's often easier for business owners to focus on the potential upsides of ad- ditional locations, rather than the downsides. Spader said that anticipating money-saving economies of scale is one of the biggest myths with expanding one's operation. "Maybe you save in health insurance because now you have 200 employees instead of 50, but then you're going to give that savings back in all the technologies to hook all the stores together," he said. "Every industry that we're in, when you look at the dollars of expense per employee … the bigger you get, they go up. You will save in some areas because of scale, but there are other areas you've got to spend it that more than offset it." In presenting both the pretty and ugly truths of expansion, Spader says it can be amazing to watch the transformation among owners or busi- ness managers deciding whether to expand. During the process, Strong suggests putting signifi cant time into creating budget scenarios that range from sunny days to worst-case sce- narios. It's crucial, he said, to consider how the company could survive if a worst-case prediction became reality. To leave no stone unturned, Spader Busi- ness Management recommends that its clients walk into the process with their eyes wide open and consult with somebody that can examine the decision from a distance and an untethered perspective. "You get three times as big and it'll bite back and fail ten times as fast, because it gets so much more complex and you have to manage them so much more proactively to stay ahead of it," Spader said. "I've watched so many lose every- thing that were running good one- or two-store business, then get big and lose it all — it will bite back so fast and so hard." COMING TO A LOCATION NEAR YOU! Call (315-692-4533) or email (liz@mraa.com) Liz Walz for more information. With an educational line-up designed to make an even bigger impact on your business, Marine Retail University is back for another round of one-day events. Find an MRU near you and save the date! More events to be added soon. MARINE RETAIL UNIVERSITY Learn more about Marine Retail University at mraa.com/MRU "Every industry that we're in, when you look at the dollars of expense per employee … the bigger you get, they go up." – John Spader, president, Spader Business Management P32x36-BI14MAY-TimetoGrow.indd 36 4/17/14 10:47 AM